Ugly Head of Taxation Rising Again

[ringoneck]

The latest circular in the announcement board wants sellers to attach a copy of tax invoice with the orders. I think more than 90% of the sellers here do not have VAT or CST.

For those who do not know, voluntary registration for VAT number in maharashtra(MVAT) costs Rs 30,000(5k for registration work and 25k security deposit). If your turnover is above 10lacs(for maha sellers), you qualify for mandatroy registration. Then you dont need to pay 25k SD, just 5k for registration. You also need to maintain your yearly turnover else your VAT registration can be cancelled(5k straight in gutter ka paani) and(if applicable) running from office to office trying to get the 25K SD back.

Don't be surprised. India(aka mahan desh) ranks no 142 out of 189 in the world for "ease of doing business".

thehindu dot com/business/Economy/india-ranks-142-in-latest-ease-of-doing-business-report-wb/article6543211.ece

Anyway, registering for CST will cost you another 5K.

Tax invoice must have a VAT number(if order within state) or a CST number( if order from outside state). A challan(bill without VAT or CST) cannot be called a tax invoice. Perhaps someone can confirm this.

If ebay sellers are to comply with the latest circular, each one of us will have to shell out 35k.

Share you opinions

[ringoneck]

Ecommerce sites have enabled the traditionally non-trading communities to enter into commerce. This line of work was once limited within castes and communities but not anyone. Money has become the mai baap of society leaving reformist movements jobless.

The new taxation laws imposed on ecommerce sites are a way by which big retail establishments are trying to contain an emerging workforce which is traditionally a pariah here. When the new govt came into power(modi sarkar), I thought that he would recognize this paradigm shift and offer his support. After all, graduates who once used to labour under a corporation now become entrepreneur and dream of "startups" is a good thing right?

Anyway, my paanwalla has informed me that almost all other ecommerce sites have started sending these "taxation requisite" circulars to the sellers on their platform as well. More than one ecommerce site sending similar requisite requests is not a coincidence. It simply means that sarkar has finally bowed down to big retail establishments and asked ecom administrators to comply with the new conditions. The irony is that 90% of these physical commerce estalishments in mumbai engaged in heavy trading do not have VAT/CST and those who have it do as formality and will hardly run 1/4th of their trade through bills. I asked my supplier in mumbai for a tax invoice(aka supplier invoice) and he just laughed (Tu naya hai kya?)

I think most of you will be running to a closest taxation lawyer within the next 6-12 months.

[vinit.desai]

Day by Day it is becoming very complicated to do eCommerce business as there is lots of documentation requirement for small business or individuals who do business from home they requires lots of documentation like VAT/CST registration and all. It's just waste of time and money and extra headache for VAT/CST Returns sumissions and all. It's easy to get VAT/CST certificate by paying some 30K or 40K bucks but long term headache of VAT/CST returns regularly. For company and big shop owner it is fine but for small business and individuals who start their online business for first year or 2nd year, they will be not having enough knowledge for all these.

[photo.square]

 talk about 30k ? in MH

here in haryana its 1 lakh , just imagin how pathetic its . its like they are directly saying to us dont do it or do it illigaly.

[vinit.desai]

govt. is encouraging us to do business via Illegal way by making all these rules difficult.

[mycorte]

Powership made mandatory providing invoice since 11th feb, our 5 parcel has been stuck in transit due to sales authorities.

Now ebay saying we will ne penalised for those parcels.

We ask question why, they have made invoice mandatory since 11th feb, and since then we are giving copy of invoice to logistic partners. and they are penalising for parcels which were sent on 31st.

How we are liable for that, why unfair penalty on us.

[vinit.desai]

Can you tell me which courier company was assigned for those shipments and for which state it was shipped?

[mycorte]

Fedex, it was shipped from Jaipur for Chennai Bangalore and Hyderbad 

[vinit.desai]

Oh!! FedEx!! So they were asking for Tax Invoice?? or Order Confirmation letter from eBay?

[mycorte]

We have already kept invoice inside parcel.

They asked us to give extra invoice to  Fedex also, but they asked on 11th feb, but parcels were detained on 31st jan, how would we know it in advance, it's not me alone. my friends and many people's parcel stuck here